Significant Events

Coronavirus Pandemic

The coronavirus pandemic continues to leave its mark on the global economy, although the impact is considerably less severe than in the previous year. Improvements in the overall situation are chiefly attributable to high vaccination rates and updated measures to combat the pandemic. Compared with the prior-year quarter, we have also observed a further upturn in demand, although this could not be met fully due to bottlenecks in global supply chains. The health, safety, and hygiene measures implemented by Covestro at an early stage last year remain in place. Covestro supports employee access to vaccinations against the coronavirus, including through cooperation with company health facilities. Depending on the local situation in each case, some staff, particularly employees in administrative departments, continue to work from home. Production at our sites was not affected by the pandemic in the first nine months of 2021.

Covestro is monitoring the development of the coronavirus pandemic worldwide on an ongoing basis. Existing measures are modified as required in line with recommendations and instructions issued by the relevant governments and committees of experts.

Other Events

In keeping with the first chapter of the strategy – “Become the best of who we are” – the Group restructured its organizational and reporting structure as of July 1, 2021. The Group’s three reportable segments to date (Polyurethanes, Polycarbonates and Coatings, Adhesives, Specialties) have been replaced with two new reportable segments: Performance Materials and Solutions & Specialties. The Performance Materials segment concentrates on reliably delivering standard products at competitive market prices. The focus of the Solutions & Specialties segment is on complex products with a high pace of innovation, which Covestro combines with application technology services. Other business activities that cannot be allocated to any of the aforementioned segments are reported under “Other/Consolidation.” Intersegment transactions are conducted at arm’s length and reported separately as net sales between segments. This Quarterly Statement marks the first time our reporting reflects the new segment structure; reference information for fiscal 2020 was restated accordingly.

On July 7, 2021, the euro bond placed in 2016 with a total volume of €500 million and maturing in October 2021 was fully repaid at par value ahead of schedule.

On July 26, 2021, Covestro completed the sale of its 51% interest in subsidiary Pearl Covestro Polyurethane Systems FZCO to co-shareholder Pearl Industries Overseas Ltd. The former subsidiary operates a system house business in Dubai (United Arab Emirates). The sale is part of an ongoing effort to optimize the portfolio and represents another step toward refocusing the Polyurethanes segment.
See “Divestitures.”